Aurobindo Pharma (ARBP IN) – Q2FY26 Result Update – In line EBITDA; US sales to pick-up – BUY
Published on 07 Nov 2025
Aurobindo Pharma’s (ARBP) Q2FY26 EBITDA of Rs16.8bn (up 7% YoY), was in line with our estimate. The company has maintained its 20-21% OPM guidance for FY26E. We expect US sales and margins to improve from H2FY26/FY27 with ramp up in PenG facility, Vizag pant commercialization and launches in US. We believe ARBP has multiple growth drivers in place with investments in vaccines, injectables, biosimilars and PLI which are expected to be reflected from FY26. Our FY26 and FY27E EPS stands reduced by 2-3%. The stock is currently trading at 8.6x EV/EBITDA and 15.5x P/E on FY27E. We maintain our “Buy” with TP of Rs1,300/share; valuing at 17x Sept2027E EPS.
